Citylets Quarterly Report Q4 2023 - Back To Black: Chapmans' Overview

Happy Friday! We wanted to share our overview of the Citylets Quarterly Report Q4 2023 – Back To Black with you. We have also attached the full report for you to take a look at below.

Activity within the Private Rented Sector (PRS) was brisk towards the end of 2023, but for the first time in a couple of years, Agents are now seeing a clear seasonality with demand softening towards the year end.

Rents continue to rise at a high level compared to historic standard but the rate of growth has eased considerably. Edinburgh and Glasgow have recorded single-digit rises at 9.7% and 6.1% respectively, which is materially lower than in previous quarters.

We don’t know if this is an indication of rental inflation returning to more normal levels, but there is a slight increase in the ‘time to let’ which is often a precursor to further changes in the rental market.

Notably, the most significant slowdown was observed in the segment of higher-priced properties, particularly those with four bedrooms, which experienced an annual decrease in rental prices. We don’t know, but can only hope this represents the start of a more sanguine level of rents going forward.

However, global uncertainties such as worldwide elections and political uncertainty in 2024, may present challenges – yet they also serve as opportunities for Landlords. The expiry of the cost-of-living (Tenant protection) (Scotland) Act might introduce complexities in the short term concerning rent increases and the implementation of a tapering mechanism.

There will be a number of properties across-the-board in Scotland where rents are far below the new average rental values and so there may be more turnover of properties as Tenants are no longer financially advantaged by staying in those old tenancies. So although there won’t be an increasing level of supply, there will potentially be more turnover of properties, which may create some fluidity and more choice for people looking for properties to rent

Therefore, despite the inherent uncertainties, 2024 could present Landlords with opportunities to optimise their portfolios in this dynamic rental market.

CLICK HERE FOR THE FULL REPORT

We hope you find this overview and cherry-picked data helpful. Do remember, the full report is also attached if you are looking to delve deeper. And watch this space for our rent increase updates coming in the months ahead.